Earlier this week, ASX listed Mitula Group (ASX:MUA) announced that the board had received (and was unanimously recommending) a takeover offer from TSE listed group, LIFULL Co (TSE:2120). Mitula is a logical acquisition for LIFULL given they acquired its main competitor, Trovit, in 2014. Combining the groups will create one of the largest online classifieds … Continue reading limited ticket size creates arbitrage opportunity
Author: hiddenvalueblog
a cash proxy with uncertain upside
Ticker: OTCPK:PCOA Price: $640 Shares outstanding: 256.8k Market capitalisation: $164m Net cash: $185m Enterprise value: ($21m) Opportunity On the 16th December 2017, Pendrell Corporation de-listed its stock from the NASDAQ and became an over-the-counter (OTC) traded security. This created a forced selling event that caused investors unable to hold OTC traded stocks to … Continue reading a cash proxy with uncertain upside
buying a dollar, for eighty cents
Name: TRIplc Berhad Ticker: KLSE:TRIPLC Price (MYR): 2.39 Market cap (MYR): 165m Market cap (USD): 42m Situation On the 15th of February, 2018 TRIplc Bhd shareholders voted in favour of a restructuring plan that will see the company sold to Puncak Niaga Holdings Bhd (KLSE:PUNCAK) and Pimpinan Ehsan Bhd (a shell company with no … Continue reading buying a dollar, for eighty cents
“heads I win, tails I don’t lose much”
Code: NASDAQCM.SPRT Market cap: $50m Enterprise value: $0 Thesis Support.com is a very average business that provides technical support for customers of Comcast, Office Depot etc. that has been losing money for years. The reason I think it’s interesting is because it currently has a market cap of ~$50m and net cash on … Continue reading “heads I win, tails I don’t lose much”
my philosophy
“You have to turn over a lot of rocks to find those little anomalies. You have to find the companies that are off the map – way off the map” – Warren Buffett I classify myself as an unreasonable opportunist. I seek out misunderstood, messy, complex & idiosyncratic bets that are in places … Continue reading my philosophy
a different frame of reference
AFH Financial Investment Thesis Nov-17 Market Data Ticker: AIM.AFHP Market cap: £94m (post raise) Enterprise value: £73m (excluding net cash adjusted for regulatory capital) Event AFH raised £17.5m via an institutional placement to accelerate their growth trajectory. Based on the increasing deal size, combined with managements ambitious growth aspirations, we believe they will … Continue reading a different frame of reference
are we the proverbial frog in a pot?
The boiling frog parable is often used as a metaphor for people's inability to react to threats that arise gradually. The story goes that if a frog is placed suddenly into a pot of boiling water, it will jump out. However, if the frog is put in tepid water which is then slowly brought to … Continue reading are we the proverbial frog in a pot?
weekly wrap 27/10/17
"As a money manager, I have frequently looked at an investment decision that I felt had a high probability of success on a three-year horizon, but about which I had many doubts on a six-month time horizon. Institutional investing, as it is structured today, simply makes it more difficult to make a high-conviction, long-term decision … Continue reading weekly wrap 27/10/17
weekly wrap 20/10/17
“You gain more by not being stupid than you do by being smart. Smart gets neutralized by other smart people. Stupid does not.” - Phil Birnbaum book of the week Shoe Dog, Phil Knight - memoir by the founder of Nike. I found the book extremely difficult to put down, predominantly because you're always waiting … Continue reading weekly wrap 20/10/17
investing in a tortoise
In a world of artificially low interest rates, public market investors seem to be rewarding one thing: growth. However, I have always had a preference for lower growth companies with extremely stable/predictable revenue streams, great cash conversion and a sensible capital allocation policy. This investment philosophy describes the type of investments many Private Equity firms target … Continue reading investing in a tortoise
